Republic to set Budget based on no agreement taking place

Warning: Paschal Donohoe IRELAND’S Finance Minister has confirmed that he will prepare the state’s budget for a nodeal Brexit.

Paschal Donohoe said he is making the decision to give certainty to businesses and people, to safeguard the national finances and to avoid the reversal of decisions in the future.

Mr Donohoe also ruled out cuts to income and personal taxes, adding that changes to the tax code will be “minimal”.

Speaking after briefing the Cabinet in Dublin, Mr Donohoe said: “Assuming a no-deal Brexit ensures the Government has the necessary resources at its disposal to meet the impact of this exceptional challenge whilst preserving the longer term sustainability of the public finances.”

Mr Donohoe also said that increases will be made to social welfare payments.

He added: “The government will, of course, put in place the resources that are needed to support citizens at a time of change and difficulty, and to put in place the provision that may be needed to accommodate a reduced tax take due to fewer people at work.

“We will also have the provision in place to increase social welfare supports and funding due to a temporary increase in unemployment.

“We will also, in that phase of the budget, introduce timely, targeted and temporary measures for the sectors of our economy that could be, and will be, affected by a no-deal Brexit taking place.”

In what he described as a “safe and careful budget”, Mr Donohoe said it will focus on ensuring the government has the resources it needs to be ready for a shock at the end of October when the UK is due to leave the EU. Asked whether he will rule out tax cuts, he said that tax changes in next year’s budget will be “minimal”.

“I want to ensure that we are maximising the resources that are available to help citizens, families and communities that could find themselves dealing with real change as a result of a no-deal Brexit taking place.”